Barely Legal: Inspect Before Inspections

Most home buyers hire an experienced home inspector before buying.  The inspection includes pest, septic system, radon, mechanical and structural.  While buyers and sellers understand the purpose is to assist the buyer in deciding to purchase the property, they do not always know their rights and obligations before and after inspection.

         If the inspection reveals problems, the buyers may request the seller fix them.  However, the fact that an inspection uncovers a problem does not automatically permit a party to terminate the contract, nor does it necessarily obligate the seller to make repairs.  The provisions of the contract itself determine the parties’ rights.  Market conditions may also play a role.  In a seller’s market, a seller is less likely to make costly repairs, since there may be numerous buyers willing to purchase the property without them. 

         All parties must carefully review the inspection provisions of their contract since they are not all the same.  While most inspection clauses are similar, there are variations that alter parties’ rights.  The Rhode Island Association of Realtors has its own sales agreement forms, yet some real estate agencies use their own forms with different inspection provisions.  Parties should not assume the contractual inspection provisions are exactly the same as in previous or simultaneous transactions.

         In addition to inspections, Rhode Island law requires sellers to disclose known defects in writing.  Generally, if a seller does not disclose a known defect, the buyer may sue the seller for damages.  Defects that could be substantially, materially deficient conditions include problems with the septic system, wet basements, or high radon levels.  

However, the buyer’s prior knowledge of a defect can be very important.  If the buyer views the property prior to making an offer and sees a crack in the foundation or water in the basement, the seller might argue that the condition was disclosed, and therefore, the buyer is prevented from terminating the contract after the inspector points out those conditions.  Similarly, in some instances a defect is so evident the seller is not liable for failure to disclose.  In a local case, the court ruled the buyer could not sue the seller for failure to disclose an erosion problem because the property was on the water.  The court reasoned that erosion is inherent with waterfront property and the buyer should have understood that fact. 

         In conclusion, regardless of the situation, the parties should understand their rights and obligations under the inspection provisions prior to signing a contract.  

Comments, questions, or concerns?  Email me at AThayer@srt-law.com or call (401) 849-3040 x222.

The materials on this website are for general information purposes only, and do not constitute legal advice. Although I have a law degree and have passed the MA bar exam, I have yet be sworn in in MA and have yet to recieve my RI bar exam results, and therefore am not a licensed attorney yet. If you have specific questions, you are encouraged to contact me and I will refer the matter to one of Sayer Regan & Thayer, LLP’s licensed attorneys. Viewing the materials contained on this site, or on any linked site, does not create an attorney-client relationship. Sayer Regan & Thayer, LLP assumes no responsibility for materials posted on any linked site. If you chose to contact us, or to inquire concerning legal services or legal advice, please be advised that such inquiry does not create an attorney-client relationship. An attorney-client relationship may only be established by separate agreement. You should not send any confidential or time-sensitive information to us unless authorized by one of our attorneys. Information sent before an attorney-client relationship is established may be determined not to be confidential.